Self-Storage REITs: Poised for 18% (or more) Annual Returns

From 1994 to 2014, self-storage REITs (real estate investment trusts) rewarded investors handsomely. They delivered 18% annualized returns with lower volatility (less drama) than their REIT peers. But the past year has been brutal for shareholders of the Big 4 self-storage REITs. The storage sell-off has included sector blue-chip Public Storage (PSA) , as well as Extra Space Storage (EXR) a top REIT performer for the past decade. The selling has not spared investors in CubeSmart (CUBE) or Life Storage (LSI) , the re-branded Sovran Self-Storage (Uncle Bob’s). This horrible performance over the past 12-months has come as a shock for most REIT investors who have come to expect handsome dividend increases and higher prices from these names. ... Read more